A Study On The Focal Issues Of WTO Reform

As the cornerstone of economic globalization and international free trade,the World Trade Organization(WTO)has made important contributions to promoting the progress of human society,the global productivity,and the development of the world economy.In the 21 st century,significant changes of world economic structure and international trade have put new requirements for the World Trade Organization development.At the same time,unilateralism,isolationism,and trade protectionism are emerging,conflicts about principles of free and fair trade among WTO member countries continue to increase,and the issues of operation efficiency and fairness of the multilateral trading system have been frequently criticized.The game playing between developed and developing countries on building a new system of international economic and trade rules has become increasingly fierce.The existing global economic governance model and WTO rule system cannot adapt to the new changes in the world economy and international trade,nor can they fully meet the practical development needs of WTO members.The authority and effectiveness of WTO have been severely challenged.In order to maintain the stability of the multilateral trading system,promote the sustainable development of the world economy,adapt to the situation of global development,and meet the needs of current international trade,the global economic governance model should be improved,and the modernization reform of WTO should be promoted.Based on the theoretical perspectives of Marxist political economics and Western economics,this paper raises the focal and key issues of WTO reform based on the development status of the world economy and international trade and then provides practical and strategic suggestions for WTO reform after deeply analysing the reality.The full text is divided into six chapters:The first chapter is the introduction,which mainly presents the research background,contributions of this study,literature review,research ideas,research methods,innovative points,and weaknesses.The second chapter focuses on the theoretical basis of WTO reform.By expatiating the theory of social basic contradiction,this chapter demonstrates that WTO reform is the adjustment of production relations and superstructure,aiming to adapt to the new development requirements of the world economy and international trade.Drawing on the theory of international division of labor,this chapter argues that the international division of labor significantly improves countries' production efficiency,and international trade gives full play to the comparative advantages of countries.By expounding the theory of international public goods,this chapter also demonstrates that WTO,as a typical international public product,is the basis for all countries to carry out global trade governance.However,the current "publicity" of the WTO is lacking,and it is necessary for member countries to strengthen international cooperation to overcome the “Collective Action Dilemma.”The third chapter summarizes the historical evolution of WTO and its governance mechanism.Chapter three briefly introduces the background of the establishment of GATT,the temporary operation mechanism and the eight-round multilateral trade negotiations.We also elaborate the establishment of WTO's functional institutions,basic governance principles and main governance mechanisms,which is the foundation of subsequent discussions on the focal and key issues of WTO reform.The fourth chapter analyses the factors that promote WTO reform.Currently,the rule system of international trade is facing the challenges from the emergence of unilateralism,isolationism,and trade protectionism.The development of regional trade agreements not only places higher requirements on the multilateral trade rule system,but also has substitution effect to WTO multilateral trade agreement,which is likely to weaken the authority and influence of WTO.Affected by the COVID-19 epidemic,the integrity of the multilateral trading system has been undermined,the global value chain has accelerated the process of restructuring,the adjustment of the world division of labor has accelerated,and the development of economic globalization has been hindered.It is hard for WTO rule system to adapt to the new development of the world economy and international trade in a timely and effective manner.Due to these factors,WTO urgently needs to speed up the modernization reform process.Chapter five discusses the focal issues of WTO reform.This chapter systematically sorts out and summarizes several key issues related to WTO reform,including:(1)as for WTO governance issues,after describing the troubles that the dispute settlement mechanism and the appellate body are facing,this part deeply analyses the “consensus” principle and “Single Undertaking” negotiation model and“Green Room Meeting” negotiation model;(2)as for the modernization of trade rules,this part expounds the relevant propositions from developed WTO member countries on the reform of industrial subsidies and disputes on the development of digital trade;(3)about “Non-market-oriented” policy and practices,we discuss the positions and views of developed WTO member countries on the issues of “compulsory technology transfer” and state-owned enterprises;(4)as for the issue of “special and differential treatment” for developing countries,we summarize the evolution process of “special and differential treatment” provisions and the status of developing countries,and provide evidence of the lack of development capabilities of developing countries through a empirical model.WTO needs corresponding institutional arrangements and policy support to adequately protect the basic developmental rights of developing countries.Chapter six proposes the basic positions and countermeasures of promoting WTO reform.This chapter deduces the future development direction of WTO and discusses the reforming steps.In addition,the proposed countermeasures and suggestions for WTO reform mainly include expanding the reform consensus,strengthening international exchanges and cooperation,improving the mechanism and function of WTO,and accelerating the speed of updating and revision of the WTO rule system.This article believes that although WTO currently encounters problems and contradictions,there is still no better global institutional arrangement and economic organization that can replace it.In the face of historical changes in international relations and the latest developments in the world economy and international trade,WTO is supposed to strengthen the modernization reform in response to focal issues.WTO reform is not only related to the vital interests of each member country,but also related to the integrity of the multilateral trading system and the future development direction of the world economy.Countries in the world should unite,seek more cooperation,and jointly promote WTO reform.